Grand Chocolate Inc. is a producer of premium chocolate based in Palo Alto. Grand Chocolate Inc. decides to examine the effect of using the dual-rate method for allocating truck costs to each round-trip. Requirement 1. Using the dual-rate method, what are the costs allocated to the dark chocolate division and the milk chocolate division when (a) variable costs are allocated using the budgeted rate per round-trip and actual round-trips used by each division and when (b) fixed costs are allocated based on the budgeted rate per round-trip and round-trips budgeted for each division? Dark chocolate Milk chocolate Variable costs Fixed costs Total costs Data table At the start of 2020, the budgeted costs were $ 1,550 $ 33,000 Variable cost per round-trip Fixed costs The actual results for the 55 round-trips made in 2020 were Variable cost Fixed costs Total $ 61,000 57,250 $ 118,250 - More info - Requirements The company has a separate division for each of its two products: dark chocolate and milk chocolate. Grand Chocolate purchases ingredients from Wisconsin for its dark chocolate division and from Louisiana for its milk chocolate division. Both locations are the same distance from Grand Chocolate's Palo Alto plant. Grand Chocolate Inc. operates a fleet of trucks as a cost center that charges the divisions for variable costs (drivers and fuel) and fixed costs (vehicle depreciation, insurance, and registration fees) of operating the fleet. Each division is evaluated on the basis of its operating income. 1. 2. Print Done Data table 1 Print Done A B C Budgeted Actual 2 Costs of truck fleet Number of round-trips for dark chocolate 3 division (Palo Alto plant - Wisconsin) Number of round-trips for milk chocolate 4 division (Palo Alto plant - Louisiana) $ 126,000 $ 118,250 35 35 25 20 Print Done - Using the dual-rate method, what are the costs allocated to the dark chocolate division and the milk chocolate division when (a) variable costs are allocated using the budgeted rate per round-trip and actual round-trips used by each division and when (b) fixed costs are allocated based on the budgeted rate per round-trip and round-trips budgeted for each division? From the viewpoint of the dark chocolate division, what are the effects of using the dual-rate method rather than the single-rate method? Single-rate method data: Total costs Single-rate allocation methods - Rate per round-trip and cost allocation method Dark chocolate Milk chocolate 1. Budgeted rate per round-trip and allocate costs based on round-trips budgeted for each division 2. Budgeted rate per round-trip and allocate costs based on actual round-trips used by each division 3. Actual rate per round-trip and allocate costs based on actual round-trips used by each division $ 73,500 $ 52,500 73,500 42,000 75,250 43,000 Print Done